Johannesburg, 19 Feb 2007
SA's fixed-line giant Telkom is renegotiating the terms of a logistics contract after the Pretoria High Court set aside its cancellation of the letter of award.
The contract, with Value Group and empowerment partner Ace of Hearts subsidiary Value SA, would see Value SA distribute Telkom's products nationwide.
A Telkom spokesperson says the R10 million-a-year deal, which was never nailed down as a binding contract, is being negotiated. "Telkom is in the process of giving effect to an order of the High Court by meeting with Value SA in order to finalise a written contract."
In December, the High Court reviewed and set aside Telkom's withdrawal of its conditional letter of award and ordered Telkom to proceed with the original award. The award was initially rescinded due to "material irregularities during the evaluation process," says the telecoms operator.
Media reports indicate Value SA told the court the operator did not have the right to rescind the contract and asked the court to overturn Telkom's action. Telkom argued no legal and binding contract existed and made a separate application for the deal to be declared invalid.
Value SA group CEO Steven Gottschalk says the company is in negotiations with Telkom and, until such negotiations are concluded, "we are not in a position to pass any commentary".
In June, media reports indicated there was a conflict of interest, as then Telkom executive Mandla Ngcobo had a business relationship with one of the directors and shareholder in Value SA, Sello Mahlangu.
Telkom disputes this, saying, "as far as Ngcobo's official duties as Telkom's chief corporate affairs officer are concerned, there is no conflict of interest whatsoever".
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